Thursday, June 18, 2009

Breaking News-RTRS-ANALYSIS-China seen scrapping US soy deals, but most will ship

CHICAGO, June 16 (Reuters) - An abrupt halt to China's U.S. soybean buying spree this spring followed by cancellations of some purchases has thrown into question the fate of some 1.3 million tonnes of soybeans bought but not yet shipped to the world's largest importer.
China has thus far scrapped only a small number of U.S. old-crop purchases but an expected slowdown in China's imports amid its now-abundant domestic supply will likely lead to more, traders and analysts said.

Breaking News-RTRS-China back in soy market for South American cargoes

BEIJING, June 17 (Reuters) - Chinese soy buyers have already booked as many as eight cargoes of soybeans from Argentina and Brazil this week, three China-based traders said on Wednesday, signifying the return of the world's largest importer to the market after a slowdown in orders.
The cargoes are due for shipment in August, they said. Eight cargoes would imply about 450,000-480,000 tonnes in the three days of the week. Last August China imported 3.8 million tonnes.

Breaking News-RTRS-US farmers unlikely to give up on soy despite rains

CHICAGO, June 16 (Reuters) - U.S. farmers are unlikely to forego seeding soybeans in the key growing states of Illinois and Indiana even as spring rains put planting weeks behind and cut into yield potential, crop specialists said on Tuesday.

Trader's Highlight

DJI-NEW YORK, June 17 (Reuters) - Technology shares buoyed the Nasdaq on Wednesday after positive broker comments on Qualcomm, but financial shares' losses held back the Dow and the S&P 500.

Banks were hurt by a broad debt ratings downgrade from Standard & Poor's and uncertainty over the government's extensive proposals for banking-industry reform.

Analysts said there were no surprises in President Barack Obama's plans to reshape financial regulation but uncertainty remained about the regulations' impact on the financial system and the wider economy.

The Dow Jones industrial average <.DJI> fell 7.49 points, or 0.09 percent, to 8,497.18. The Standard & Poor's 500 Index <.SPX> was off 1.26 points, or 0.14 percent, at 910.71. The Nasdaq Composite Index <.IXIC> gained 11.88 points, or 0.66
percent, to 1,808.06.

NYMEX-NEW YORK, June 17 (Reuters) - U.S. crude oil futures ended higher on Wednesday, climbing back above $71 a barrel in late trading, as traders took a second look at government data showing a higher-than-expected drawdown in crude stocks last week.

On the New York Mercantile Exchange, July crude settled up 56 cents, or 0.79 percent, at $71.03 a barrel, trading from $69 to $71.28.

CBOT-SOYBEANS - July up 5 cents at $12.06-1/4 a bushel.

Market receiving support from tight stocks. July/November spread weakening due to planting delays that could limit new crop. Deferred contracts leading front-month higher.

There was talk that China released 5 million tonnes of soybeans out of its state reserves.

CBOT-SOYOIL - July up 0.14 cent at 37.10 cents a lb. Rally in crude oil prices lends support to soyoil.

FCPO-KUALA LUMPUR, June 17 (Reuters) - Malaysian palm futures dropped 1 percent on Wednesday, moving towards the previous day's 2-month low as demand concerns resurfaced in the market.

The benchmark September contract on Bursa Malaysia's Derivatives Exchange settled down 25 ringgit to 2,375 ringgit ($672.8) per tonne. The contract dropped to 2,358 ringgit per tonne on Tuesday, a level unseen since April 17. Overall volume stood at 12,464 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 17 (Reuters) - Southeast Asian stock markets
fell on Wednesday as investors took profits from a recent rally in financial and telecom shares, with Singapore's DBS, Malaysia's Axiata and Indonesia's Bank Central Asia among losers.

Doubts about the global economic recovery fuelled the sell-off and dealers said the selling would continue.

Singapore's main stock index <.FTSTI> fell for a fifth day, ending down 0.7 percent at a three-week low, Malaysia <.KLSE> and Indonesia <.JKSE> both lost 0.3 percent, while the Philippines <.PSI> dropped 2.9 percent.

Thailand's SET Index <.SETI> lost 1.7 percent, extending its fall into a third day, but Vietnam <.VNI> bucked the trend, eking out a small gain of 0.11 percent.

DJI Daily: Losing ground further


We continue to look for the immediate downside support at 8200-8000.While, immediate resistance is stood at 8600-8650

KLSE Daily: still consolidate


Nothing much improvement on the immediate technical landscape as consolidation looks likely to extend in near term. As for now, we continue to look for the resistance at 1083-1086 (gap left over on 16/6/2009). Downside support is pegged at 1066-1063 (gap left over since 5/6/2009) followed by 1055.

FKLI Daily: remains in consolidation phase


Market had slowing down its upside move and entering to a healthy consolidation phase. As for now, we are looking for the upside resistance at 1080-1085 followed by 1092. Downside support is adjusted to 1065-1060 followed by 1055-1050.

FCPO Daily: Range trading likely to continue


Market looks likely to extend its range trading in near term as prices continue to stuck in between 2350 to 2450.